Banks, Fintechs Face Round Two of Fight Over Data Sharing

A US consumer watchdog looks poised to tear up a controversial rule on customer financial data sharing and start all over again — but with a depleted staff, a potentially drained budget and all of the same thorny issues.

The Consumer Financial Protection Bureau is likely to scratch and rework its open-banking rule, which requires banks to share their customers’ deposit account and credit card information when they request it with fintech firms for free. While such a move is ostensibly a win for large banks including JPMorgan Chase & Co., which lobbied against the measure, it could re-open the fight and risk expanding its scope at a time when the CFPB’s fate is in doubt.